CCI Smart Contracts and DeFi Investigations

Question 1

What is a smart contract in the context of blockchain technology?

Accepted Answer

Self-executing code deployed on a blockchain that automatically enforces agreement terms

Answer

Smart contracts are self-executing programs stored on a blockchain that automatically enforce and execute the terms of an agreement when predetermined conditions are met.

Question 2

Which blockchain platform is most commonly associated with smart contract functionality central to DeFi investigations?

Accepted Answer

Ethereum

Answer

Ethereum pioneered smart contract functionality and remains the dominant platform for DeFi applications, making it central to most DeFi investigations.

Question 3

What does the ERC-20 standard define in the Ethereum ecosystem?

Accepted Answer

A technical standard for fungible tokens on Ethereum

Answer

ERC-20 defines a common standard for fungible tokens on the Ethereum blockchain, enabling interoperability between tokens and decentralized applications.

Question 4

In DeFi, what does TVL (Total Value Locked) measure?

Accepted Answer

The total value of assets deposited in a DeFi protocol's smart contracts

Answer

TVL represents the total value of cryptocurrency assets deposited and locked within a DeFi protocol's smart contracts, indicating the protocol's size and adoption.

Question 5

What is a 'rug pull' in the context of DeFi fraud?

Accepted Answer

When developers abandon a project and abscond with investor funds

Answer

A rug pull occurs when cryptocurrency developers abandon a project and abscond with investor funds, typically after creating artificial hype and attracting liquidity.

CCI - Certified Cryptocurrency Investigator Practice Test

CCI - Certified Cryptocurrency Investigator Practice Test

CCI Smart Contracts and DeFi Investigations